NYSE:IT

Stock Analysis Report

Executive Summary

Gartner, Inc. operates as a research and advisory company.

Snowflake

Fundamentals

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has Gartner's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

IT

-1.8%

US IT

1.0%

US Market


1 Year Return

-1.9%

IT

20.6%

US IT

8.0%

US Market

Return vs Industry: IT underperformed the US IT industry which returned 20.6% over the past year.

Return vs Market: IT underperformed the US Market which returned 8% over the past year.


Shareholder returns

ITIndustryMarket
7 Day0.8%-1.8%1.0%
30 Day1.0%-0.9%-0.07%
90 Day-14.3%-5.5%-1.0%
1 Year-1.9%-1.9%21.9%20.6%10.4%8.0%
3 Year64.2%64.2%93.3%85.4%46.2%36.7%
5 Year88.3%88.3%146.1%123.5%64.3%46.2%

Price Volatility Vs. Market

How volatile is Gartner's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gartner undervalued compared to its fair value and its price relative to the market?

59.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IT ($145.07) is trading above our estimate of fair value ($86.75)

Significantly Below Fair Value: IT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IT is poor value based on its PE Ratio (59.6x) compared to the IT industry average (37.1x).

PE vs Market: IT is poor value based on its PE Ratio (59.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: IT is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: IT is overvalued based on its PB Ratio (13.6x) compared to the US IT industry average (4.3x).


Next Steps

  • Explore potentially undervalued companies in the Software industry.

Future Growth

How is Gartner forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IT's forecast earnings growth (14.5% per year) is above the savings rate (2.7%).

Earnings vs Market: IT's earnings (14.5% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: IT's earnings are forecast to grow, but not significantly.

Revenue vs Market: IT's revenue (10.5% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: IT's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IT's Return on Equity is forecast to be very high in 3 years time (42.1%).


Next Steps

Past Performance

How has Gartner performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IT's earnings have declined by -13.9% per year over the past 5 years.

Accelerating Growth: IT's earnings growth over the past year (156.4%) exceeds its 5-year average (-13.9% per year).

Earnings vs Industry: IT earnings growth over the past year (156.4%) exceeded the IT industry 9.8%.


Return on Equity

High ROE: Whilst IT's Return on Equity (22.82%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: IT's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: IT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gartner's financial position?


Financial Position Analysis

Short Term Liabilities: IT's short term assets ($1.7B) do not cover its short term liabilities ($2.5B)

Long Term Liabilities: IT's short term assets (1.7B) do not cover its long term liabilities (3.3B)


Debt to Equity History and Analysis

Debt Level: IT's debt to equity ratio (232.9%) is considered high

Reducing Debt: IT's debt to equity ratio has increased from 192.8% to 232.9% over the past 5 years.

Debt Coverage: IT's debt is well covered by operating cash flow (24.8%).

Interest Coverage: IT's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: IT has a low level of unsold assets or inventory.

Debt Coverage by Assets: IT's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Gartner's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate IT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if IT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Gartner's salary, the management and board of directors tenure and is there insider trading?

8.4yrs

Average management tenure


CEO

Gene Hall (62yo)

15.2yrs

Tenure

US$11,502,517

Compensation

Mr. Eugene A. Hall, also known as, Gene serves as Chief Executive Officer of Gartner Inc. since 2004. He is Chief Executive Officer of Gartner Consulting, Inc., a subsidiary of Gartner, Inc. Mr. Hall has b ...


CEO Compensation Analysis

Compensation vs. Market: Gene's total compensation ($USD11.50M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Gene's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.4yrs

Average Tenure

52.5yo

Average Age

Experienced Management: IT's management team is seasoned and experienced (8.4 years average tenure).


Board Age and Tenure

13.0yrs

Average Tenure

64yo

Average Age

Experienced Board: IT's board of directors are seasoned and experienced ( 13 years average tenure).


Insider Trading

Insider Buying: IT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$249,97910 Sep 19
Anne Fuchs
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,828
Max PriceUS$136.75
SellUS$198,74303 Sep 19
Alwyn Dawkins
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Conferences
Shares1,500
Max PriceUS$132.58
SellUS$99,86028 Aug 19
Alwyn Dawkins
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Conferences
Shares771
Max PriceUS$129.52
SellUS$53,21612 Aug 19
Alwyn Dawkins
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Conferences
Shares400
Max PriceUS$133.04
SellUS$634,19310 Jun 19
Joe Beck
EntityIndividual
Shares4,032
Max PriceUS$157.29
SellUS$107,45006 Jun 19
Alwyn Dawkins
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Conferences
Shares700
Max PriceUS$154.00
SellUS$272,19904 Jun 19
Karen Dykstra
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,812
Max PriceUS$150.22
SellUS$107,80024 May 19
Michael P. Diliberto
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares700
Max PriceUS$154.00
SellUS$982,08621 May 19
Robin Kranich
EntityIndividual
Role
Head of Human Resources
Executive Vice President of Human Resources
Shares6,366
Max PriceUS$154.42
SellUS$1,190,45218 Mar 19
M. R. Thomas
EntityIndividual
Shares8,259
Max PriceUS$144.14
SellUS$537,85214 Mar 19
M. R. Thomas
EntityIndividual
Shares3,706
Max PriceUS$145.13
SellUS$1,214,92813 Mar 19
Robin Kranich
EntityIndividual
Role
Head of Human Resources
Executive Vice President of Human Resources
Shares8,496
Max PriceUS$143.00
SellUS$511,22612 Mar 19
Craig Safian
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,635
Max PriceUS$140.64
SellUS$13,023,63505 Mar 19
Eugene Hall
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares90,935
Max PriceUS$143.83
SellUS$271,09725 Feb 19
Alwyn Dawkins
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Conferences
Shares1,909
Max PriceUS$142.01
SellUS$460,40529 Nov 18
Robin Kranich
EntityIndividual
Role
Head of Human Resources
Executive Vice President of Human Resources
Shares3,085
Max PriceUS$149.24
SellUS$147,44026 Nov 18
Craig Safian
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,000
Max PriceUS$147.44
SellUS$202,84220 Nov 18
Alwyn Dawkins
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Conferences
Shares1,378
Max PriceUS$147.20

Ownership Breakdown


Management Team

  • Gene Hall (62yo)

    CEO & Director

    • Tenure: 15.2yrs
    • Compensation: US$11.50m
  • Robin Kranich (48yo)

    Executive Vice President of Human Resources

    • Tenure: 11.4yrs
    • Compensation: US$2.58m
  • Jules Kaufman (61yo)

    Executive VP

    • Tenure: 2.2yrs
  • Ken Davis (50yo)

    Executive Vice President of Products & Services

    • Tenure: 13.2yrs
  • David McVeigh (52yo)

    Executive Vice President of Global Business Sales

    • Tenure: 0.5yrs
    • Compensation: US$2.59m
  • Alwyn Dawkins (53yo)

    Executive Vice President of Conferences

    • Tenure: 11.4yrs
    • Compensation: US$2.60m
  • Mike Diliberto (53yo)

    Executive VP & Chief Information Officer

    • Tenure: 3.3yrs
  • Craig Safian (50yo)

    Executive VP & CFO

    • Tenure: 5.3yrs
    • Compensation: US$3.51m
  • Peter Genovese

    Senior Director of Sales Strategy & Operations

    • Tenure: 0yrs
  • David Cohen

    Group Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Stephen Pagliuca (64yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$300.07k
  • Bill Grabe (81yo)

    Independent Director

    • Tenure: 26.5yrs
    • Compensation: US$317.42k
  • Raul Cesan (71yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$310.03k
  • Rich Bressler (62yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$330.07k
  • Karen Dykstra (60yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$314.90k
  • Anne Fuchs (71yo)

    Independent Director

    • Tenure: 20.3yrs
    • Compensation: US$332.61k
  • Jim Smith (79yo)

    Independent Chairman of the Board

    • Tenure: 15.2yrs
    • Compensation: US$414.88k
  • Gene Hall (62yo)

    CEO & Director

    • Tenure: 15.2yrs
    • Compensation: US$11.50m
  • Eileen Serra (64yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$306.05k
  • Peter Bisson (62yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$307.58k

Company Information

Gartner, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gartner, Inc.
  • Ticker: IT
  • Exchange: NYSE
  • Founded: 1979
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$13.076b
  • Shares outstanding: 90.14m
  • Website: https://www.gartner.com

Number of Employees


Location

  • Gartner, Inc.
  • 56 Top Gallant Road
  • PO Box 10212
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1993
GGRADB (Deutsche Boerse AG)YesCommon StockDEEUROct 1993
IT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1993
0ITVLSE (London Stock Exchange)YesCommon StockGBUSDOct 1993

Biography

Gartner, Inc. operates as a research and advisory company. It operates through three segments: Research, Conferences, and Consulting. The Research segment offers objective insights and advice on the priori ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:36
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.